China has officially denied reports that it is planning an investigation into Microsoft's market position in the country.

State media companies reported last week that the government was planning an investigation into Microsoft once its first anti-monopoly law is enacted in August. However, officials are now denying the story.

"We are not conducting an anti-monopoly investigation against Microsoft and have no plans to do so,'' Yin Xintian, a spokesman and legal director at the State Intellectual Property Office in Beijing, told Bloomberg.

"We did commission a study into the frequency of China's software piracy and published the results on 28 May."

Xintian said that reports of an investigation were "totally untrue".

It has taken China 13 years to formulate an anti-monopoly law and many had suspected that Microsoft would be an early target, since a copy of Office and Windows costs nearly as much as a new computer in local currency.

Microsoft claimed that it is not aware of any investigation. "Microsoft fully supports China's efforts to establish an environment conducive to promoting fair competition,'' the company said.

"[China's anti-monopoly law] will better safeguard the interests and benefits of consumers, encourage innovation and enhance economic development."